Vinayak Polycon profit falls 36% despite higher income

Vinayak Polycon International Limited reported profit after tax of Rs 2.75 lakh for the quarter ended September 30, 2026, compared with Rs 4.32 lakh a year earlier. Vinayak Polycon’s total income increased to Rs 6.18 crore, but total expenses rose to Rs 6.15 crore and reduced profit before tax to Rs 2.73 lakh.

Why did Vinayak Polycon’s September-quarter profit decline?

Vinayak Polycon’s profit after tax declined by 36% year on year to Rs 2.75 lakh in the quarter ended September 30, 2026, from Rs 4.32 lakh in the quarter ended September 30, 2025. Profit before tax fell to Rs 2.73 lakh from Rs 5.99 lakh, and the company reported no exceptional items in either period.

The change followed a rise in total expenses to Rs 6.15 crore from Rs 5.01 crore, while total income rose to Rs 6.18 crore from Rs 5.07 crore. The difference between income and expenses narrowed to Rs 2.73 lakh in the latest quarter from Rs 5.99 lakh a year earlier, before tax.

Vinayak Polycon recorded total comprehensive income of Rs 2.75 lakh for the September 2026 quarter, the same as profit after tax because the statement did not report other comprehensive income. The company’s paid-up equity share capital remained Rs 3.08 crore at September 30, 2026, unchanged from September 30, 2025.

How did Vinayak Polycon’s income change in the September quarter?

Vinayak Polycon reported total income of Rs 6.18 crore for the September 2026 quarter, an increase from Rs 5.07 crore in the year-earlier quarter. Other income was Rs 17.76 lakh in the latest quarter, compared with no separately reported other-income amount in the September 2025 column.

The financial-results extract shows revenue from operations of Rs 6.09 crore in the quarter ended June 30, 2026 and Rs 5.07 crore for the quarter ended September 30, 2025. The September 2026 revenue-from-operations cell is not clearly reproduced in the supplied extract; however, reported total income of Rs 6.18 crore and other income of Rs 17.76 lakh are stated for that quarter.

For the half year ended September 30, 2026, Vinayak Polycon reported revenue from operations of Rs 12.27 crore, compared with Rs 10.14 crore in the corresponding 2025 period. Total income was Rs 12.27 crore for the latest half year, including other income of Rs 32,000, versus Rs 10.14 crore a year earlier.

Which costs increased at Vinayak Polycon?

Vinayak Polycon’s cost of materials consumed rose to Rs 4.06 crore in the September 2026 quarter from Rs 3.09 crore a year earlier. This increase of Rs 97.10 lakh was the largest clearly stated year-on-year movement among the separately presented expense lines.

Employee-benefit expense increased to Rs 67.72 lakh from Rs 60.44 lakh, while changes in inventories of finished goods moved to an expense of Rs 10.83 lakh from a credit of Rs 13.42 lakh. Other expenses were Rs 1.12 crore in the September 2026 quarter, compared with Rs 23.95 lakh in the September 2025 quarter.

Some charges declined in the latest quarter. Finance costs were Rs 4.57 lakh, against Rs 6.51 lakh a year earlier, and depreciation and amortisation expense was Rs 13.30 lakh, against Rs 14.82 lakh. Those reductions were smaller than the increase in materials cost and the reported total-expense increase of Rs 1.14 crore.

What was Vinayak Polycon’s first-half performance?

Vinayak Polycon reported profit after tax of Rs 7.14 lakh for the half year ended September 30, 2026, down from Rs 9.68 lakh in the corresponding 2025 period. Profit before tax declined to Rs 7.55 lakh from Rs 11.18 lakh, although total income increased to Rs 12.27 crore from Rs 10.14 crore.

Total expenses rose to Rs 12.20 crore for the latest half year from Rs 10.03 crore in the prior-year period. Cost of materials consumed increased to Rs 8.14 crore from Rs 6.23 crore, while employee-benefit expense rose to Rs 1.27 crore from Rs 1.17 crore.

Vinayak Polycon’s basic and diluted earnings per equity share were Rs 0.23 for the six months ended September 30, 2026, compared with Rs 0.31 in the corresponding period of 2025. For the September quarter alone, basic and diluted earnings per share were Rs 0.09, compared with Rs 0.14 a year earlier.

What do Vinayak Polycon’s balance sheet and cash flow show?

Vinayak Polycon’s total assets were Rs 8.91 crore at September 30, 2026, down from Rs 10.07 crore at March 31, 2026. Inventories fell to Rs 1.63 crore from Rs 2.82 crore, while trade receivables rose to Rs 3.04 crore from Rs 2.88 crore.

Equity increased to Rs 5.13 crore at September 30, 2026 from Rs 5.06 crore at March 31, 2026. Current borrowings declined to Rs 2.10 crore from Rs 3.40 crore, whereas trade payables rose to Rs 23.40 lakh from Rs 8.13 lakh; non-current borrowings were unchanged at Rs 48.84 lakh.

Vinayak Polycon generated net cash flow from operating activities of Rs 1.33 crore in the half year ended September 30, 2026. The cash-flow statement shows a Rs 1.19 crore reduction in inventory and a Rs 15.88 lakh increase in trade receivables, while financing activities used Rs 1.41 crore, including a Rs 1.30 crore reduction in working-capital borrowings.

Cash and cash equivalents closed at Rs 33.35 lakh on September 30, 2026, compared with Rs 40.67 lakh at March 31, 2026. The reported net decrease in cash and cash equivalents during the six-month period was Rs 7.32 lakh.

How were Vinayak Polycon’s September results reviewed?

Vinayak Polycon’s board approved the unaudited standalone results for the quarter and half year ended September 30, 2026 on October 31, 2026. The filing says the audit committee reviewed and recommended the results before board approval, and that they were prepared under Indian Accounting Standard 34, Interim Financial Reporting.

A. Natani & Co. issued its limited review report on October 31, 2026. The auditor stated that nothing had come to its attention to indicate that the results did not make the required disclosures or contained a material misstatement; it also stated that a limited review provides less assurance than an audit.

Vinayak Polycon said its business falls within a single operating segment under Indian Accounting Standard 108, Operating Segments. The filing therefore does not provide a segment-wise split of the Rs 12.27 crore of first-half total income, costs or profit.

Conclusion

Vinayak Polycon’s September-quarter outcome was lower profit despite higher reported total income. Total income increased by Rs 1.10 crore year on year, but total expenses increased by Rs 1.14 crore, led by a Rs 97.10 lakh rise in material-consumption cost, and profit after tax declined to Rs 2.75 lakh.

The next results will show whether material costs, which reached Rs 8.14 crore in the first half of fiscal 2027, change relative to income. Vinayak Polycon did not disclose a financial target, operational plan or scheduled corporate event in the September 2026 results filing, and continues to report its activity as one operating segment.